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ZOOMING IN
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REPORT
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TREND HUNTER
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EBCENTER ACTIVITIES
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EBCENTER KNOWLEDGE
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ITEMS OF INTEREST
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ZOOMING IN
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REPORT
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Advertising Behind Mobile Entertainment Boom
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Title: The Netsize Guide 2007 Edition. Convergence: Everything’s Going Mobile Source: Netsize Group Date: February 21, 2007 Abstract: Mobile phone penetration has already surpassed 80% in most developed markets, and has even reached 100% in some countries. Among these is Spain, which had 46 million mobile phone users in 2006. The analysts at Netsize predict that the mobile phone industry is at the dawn of a period of major growth and prosperity. Beyond voice calls or SMS text messages, cell phones are now being used for a number of additional functions, including mobile entertainment, mobile marketing, mobile business and electronic mobile commerce. The study shows that music was the main source of growth in the subsegment of mobile entertainment in 2006, although the numbers were also boosted by television, videos and games. According to the report, the latter of these will bounce back from a period of relative stagnation experienced by the mobile games market from late 2005 to mid 2006. Netsize also makes note of the growth potential for mobile commerce, although it warns that companies and providers must be able to expand payment methods, so as to cater to different types of consumers. Advertising will be another contributor to this surge in mobile content, helping to subsidize costs to the consumer.
Full Story (free registry required)
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TREND HUNTER
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The Patent War
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In the information technology market there is major disagreement regarding the rules that should be applied to patents, especially when it comes to software. Meanwhile, patent infringement disputes are becoming commonplace, so much that the US government could empower the Patent and Trademark Office to directly handle the majority of these lawsuits, taking the function away from the judicial system. Among the most famous recent cases are the more or less veiled threats by Microsoft against Linux users for supposed patent infringement, in another example of how patents have become another formula for generating revenues or scare off their rivals. Nevertheless, the most noted case is the recent ruling against Microsoft, which has been ordered to pay over €1 billion to Alcatel-Lucent for its use of MP3 format audio compression technologies. The ruling could lead to a string of lawsuits given the popularity of digital music, which is largely MP3 based. But the list of pending claims, many of which are against Microsoft, continues to grow.
Articles in New York Times and Cinco Días News in El País
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Try It and if You Like It, Buy It
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Tryvertising, a new variation of product placement, entails consumers trying out the product at their convenience, without pressure from the manufacturer. With this formula, manufacturers are seeking a closer knit dialogue with consumers than that provided by mass marketing campaigns. As a result, tryvertising is especially appropriate for consumers of high-priced products. These customers, normally part of the upper-middle income segment, respond favorably to the idea of being able to try out the product before purchasing. One of the luxury brands using this strategy is Mercedes-Benz, which allows guests of the Ritz-Carlton hotel chain test drive its CLS500 model. Other companies are using tryvertising to connect with a less elite segment of the population than the previous case. Ikea, for instance, has reached a deal with the French hotel chain Etap, which has been redecorated entirely with furniture from the Swedish multinational so that its guests can test out its comfortability. Tryvertising favors manufacturers because satisfied consumers become proponents of the virtues of their products while critics help them fix their weak points. Word of mouth is very powerful. And it was made even more so by the World Wide Web.e-Wom adds two new important dimensions to the concept: unprecedented scalability and speed of diffusion, and persistence and measurability.
Article in Trendwatching Report in e-business Center (PDF, 921 Kb)
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EBCENTER ACTIVITIES
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EBCENTER KNOWLEDGE
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ITEMS OF INTEREST
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Copyright 2008 e-business Center PricewaterhouseCoopers & IESE Business School.
Copyright 2008 e-Business Center PwC&IESE. All rights reserved. This document can be redistributed, retransmited or copied without modifying for any but commercial use. This copyright comment and the URL http://www.ebcenter.org must be included at all times.
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